“Chinese ride-hailing service Didi Chuxing is to acquire Uber’s China business, the companies announced on Monday, in a deal, according to a person familiar with the matter, that would value the combined company at $35 billion,” Arjun Kharpal reports for CNBC.

“Uber global will receive 5.89 percent in the combined company with ‘preferred equity interest’ which is equal to a 17.7 percent stake,” Kharpal reports. “Baidu and Uber’s other Chinese shareholders will receive a 2.3 percent stake in Didi Chuxing, taking the stake in combined company to 20 percent.”

“The $35 billion is made up of Didi’s latest $28 billion valuation and $7 billion value for Uber China,” Kharpal reports. “The deal could pave the way for Didi to expand beyond China and into new markets… It recently closed a financing round worth $7.3 billion , of which Apple was an investor.”